Open Source White Papers

Government initiatives regarding open source and their successes and failures

Prepared for: Open Source Development and Documentation Project (OSDDP)

By: Lindsay Bentz, Melissa Boeckman, and An-An Ku

October 18, 2004

Executive Summary

This paper provides information regarding various government open source initiatives, such as in Munich, India, Japan, South Korea, China, and Brazil .

Munich, the first government to make a large switch to open source, experienced major benefits such as improved security and forced competition in the software market. India currently works on implementing open source in schools, banks, and the military. India believes the benefits of open source will include tighter military security and modernization of the country technologically.

Japan proposed an Asian open source system mainly to compete with Microsoft's and the United States' dominance of the software market. To achieve success, Japan will need cooperation from China and Korea. China's government has shown support for open source so far by not responding to Microsoft's demand that it crack down on piracy. Korea's government also supports open source, but it could be hard to get Japan, China, and Korea to work together and make the open source industry a successful rival of Microsoft.

Brazil currently has two government agencies that have started using open source. Brazilian businesses such as food chains and public computer centers also use open source. Brazil's president wants all government agencies to use open source to help bridge the technological gap between Brazil and countries like the United States. The major benefit of open source for Brazil is the cheap cost, since Brazil cannot afford Microsoft software.

Challenges include strong opposition from Microsoft and fear that open source will give governments excessive power.

Introduction

In the last few years, open source software has burst upon the computer industry as a new and innovative alternative to traditional software programs and companies. Open source allows users to see and modify its code, enabling them to improve the software and then redistribute it (Open Source Initiative). Traditional software companies such as Microsoft use closed source software, meaning no one outside of the company can alter or even view the code (Stanco).

Open source provides a cheaper alternative than Microsoft. Due to these factors, governments around the world are considering switching from Microsoft to open source. A more secure system results from the ability to see and change software codes . Many governments do not like using closed source software because of hackers, and the governments have to depend on programmers of the commercial vendor to fix the problem (Stanco). Another reason governments do not like closed source software stems from the fear that Microsoft, a U.S. company, might purposely put backdoors into other countries' software. Open source, on the other hand, allows all users to find and get rid of bugs, therefore causing greater security. “Users are wonderful things to have….Because source code is available, they can be effective hackers. This can be tremendously useful for shortening debugging time. Given a bit of encouragement, your users will diagnose problems, suggest fixes, and help improve the code far more quickly than you could unaided.” (Raymond).

Governments also like open source because by using it, they do not get locked into a contract as they would with a company like Microsoft, and they will not depend on a large commercial vendor to keep their programs up-to-date and secure (Stanco).

While Microsoft still controls most of the software and operating system industries, open source and Linux continue to increase in popularity, and some governments have already passed policies regarding the use of open source (Stanco). Below are some of the initiatives various governments have taken with open source, and their successes and failures.

Munich

Implementation

The city of Munich proposed and voted to migrate 14,000 Microsoft computers to Linux, making it the biggest Microsoft customer to make this size of a migration. Although Microsoft remains one of the most successful computer software corporations, open source has begun to slowly gain popularity (Microsoft at; Bass). In fact, according to Chris Stone, vice chairman of network-software maker Novell, Munich has become “the poster child for the desktop Linux movement” (Bass).

Successfully accomplishing a migration from Microsoft to Linux proves a difficult task. Because types of software differ from company to company, the switch will require intricate strategic planning and long hours. Munich formed project groups to determine types of clients involved, testing procedures, training programs, formats needed, costs of implementation, and methods of spreading information. These plans for migration will only succeed if every software manager in the city agrees to use them (Linux-the).

Munich has decided to use a “soft” migration, which involves creating an intermediate system to gradually switch applications to open source. Migration teams inform business employees of the new open source system through the use of seminars, flyers, demonstration systems, and personal discussions in order to “decrease employee fears and reservations about the use of open source software” (Linux-the).

Benefits

Part of Munich's main motivation for this large migration stems from the lack of security proprietary software such as Microsoft gives. The computer systems hold important files such as birth certificates and criminal DNA records. In addition, increasing technology allows for filing of information and records online. Governments have doubts about the amount of security commercial vendors can provide. In order to compete with some of these security issues, Microsoft has begun to open more of its software to individuals and has made some portions of code available to users (Microsoft at).

In response to the security issue, open source provides transparency on its software, easily exposing bugs and “backdoors” (Microsoft at; Raymond). Open source software producers such as Linux offer their product for free to their customers; however, some of the specific licenses entail a small fee. Not only does Linux cost less, but open source also has the advantage of allowing users to modify it to “suit clients' needs” and to upgrade it as desired (Bass).

Munich's government officials support open source software because it encourages competition in the software market and ensures them that they do not have to rely on a single vendor (Microsoft at; Linux-the).

Challenges

Although open source software continues to spread rapidly, it does not currently work with all applications. In Munich, over 28,000 educational licenses remain in use because Linux offers no alternative at the moment. Some sources say other Microsoft applications such as spreadsheets allow for easier use than open source software (Bass). However, Open Office compares closely to Microsoft Office and not only includes all the same applications, but is compatible with Microsoft Office as well. “It includes the key desktop applications, such as a word processor, spreadsheet, presentation manager, and drawing program, with a user interface and feature set similar to other office suites. Sophisticated and flexible, OpenOffice.org also works transparently with a variety of file formats, including those of Microsoft Office” (About us).

Microsoft officials have tried to discourage the use of Linux, saying that “its openness makes it insecure and therefore vulnerable to terrorism” (Microsoft at). The power given to the government through a migration concerns citizens. Once a government decides to implement the software, all citizens and businesses must adopt and use it as well (Microsoft at).

Far East Asia

Implementation

Open Source has rapidly built momentum in Far East Asia. Japan led the way in adopting this policy and many other countries in Asia followed suit once they saw the benefits of open source. Currently, Japan has an open source system based on Linux and has recently proposed an Asian open source operating system platform as an effort to rival North America . This new system especially targets the Microsoft monopoly and the operating system industry. Hitachi and Fujitsu have attempted to shift the overall computing business to Japan and experience the same success that they have achieved in the consumer electronics market (Enderle).

Benefits

The Japanese believe their endeavors in open source will ultimately lead to a power shift in the software industry. According to Reuters news agency, other Asian countries such as China and South Korea verbally support Japan's efforts and have followed suit in adopting an open source operating system based off of Linux (Enderle). The Mozilla Foundation and Mozilla Japan Today recently launched a Mozilla-Japan.org website, a non-profit organization that promotes, develops and deploys Mozilla products throughout Japan. Services include migration support and product deployment and technical assistance. According to Mitchell Baker, Japan has a large concentration of Mozilla users. “We are delighted to support the creation of Mozilla Japan . Mozilla Japan will play a vital role in ensuring that Japanese users have access to the highest quality products and to the full range of services needed for broad end-user and enterprise adoption” (Mozilla Affiliate).

Following the example of Japan, China has also adopted an open source policy. Compared to Microsoft's Windows and Unix operating systems, which are based on proprietary programming, Linux appears widely safer and cheaper. People's Daily Online reports that China has already prepared a 200 page scheme for the Linux standard, through which Japan, China and South Korea will presumably offer “the Asian version of desktop Linux (China Denies). In Asia, Microsoft's success diminishes due to the amount of illegally copied software. In China, approximately 97% of their software gets copied. Microsoft officials attempt to crack down on these piracy issues; however, without the cooperation of the Chinese government, very little can be done. If Linux flourishes in China, it could pose many dangers for Microsoft. “The real value of open source to a country like China is developing a public infrastructure for a software industry. It's a reasonable and cost-efficient way for China to compete globally,” says Kevin MacIsaac, an analyst with the Metagroup in Sydney (Leander).

Challenges

In order to expand success, Asia must overcome many obstacles. In Japan, Hitachi and Fujitsu failed in their endeavor to acquire IBM's intellectual property because of the technology and channel gap. Their efforts only gained partial success due to IBM's virtually vulnerable direct sales channel (Enderle). Initially, Japan had a large hand in the PC industry. Unfortunately, once the Japanese company NEC crumbled under its attempt to take on Packard Bell, a US company, Japan lost all chances of gaining a significant market outside Asia. Japanese companies Sony, Fujitsu, Hitachi and Matsushita Electric have all made runs in the software market, but have had little success.

Microsoft does not worry about the triple Asian threat. They believe their pricing policies which adapt to regional and political changes will hold more effective in the long run. While initial efforts have failed primarily due to complexity, analysts believe that Japan, China and South Korea working together will ultimately cause disaster (Enderle). Historically, these three countries have shown significant problems collaborating and sharing power.

India

Implementation

India's first implementation of open source occurred with the signing of two Memorandas of Understanding with IBM by the government of Uttaranchal (Indian state). Soon after, India's president and supreme commander of the armed forces, Abdul Kalam, revealed open source as a defense mechanism against cybersecurity threats in the military. In talks with the Indian Navy's Weapons and Electronic System Engineering Establishment, Kalam expressed his impression with the usefulness of the new technology in defense training. Open source gave him the ability to talk to people in North America using voice internet, which he found remarkable. Kalam wants open source to help India “achieve self-reliance in software needed for critical weapon system development” (Sharma). Also, due to its cost effectiveness, India has started to implement open source in various state and private banks such as the Central Bank of India and the treasury department in West Bengal state (Sharma).

Benefits

Open source will bring India into the heart of the IT revolution by forcing the country into the market. President Kalam states that open source “offers developing nations the best opportunity to modernize” (Becker). The use of this technology will improve interaction with citizens who no one can contact due to India's rough terrain. In addition, open source avoids “duplication of effort across government departments” (Indian state).

While citizens see the software as a tool for Indian language computing needs, governments see it as “a way to cut back on non-productive expenditures so that they can focus on more critical issues such as health, employment, and education” (Indic-Computing, Indian state). Joseph Koshy states in his paper, “Design Axes for the Indian Language Computing Market,” that “computing in local languages remains unavailable to the common man in the Indian subcontinent” (Koshy). “We shall bring the government to the door of the citizen. We believe that this will help drive greater transparency, agility, better citizen service and quality education" (Indian state).

Open source allows operation between new and old software and provides easy to use instruction for all non-skilled officials. Several colleges even provide training programs to encourage the growth of open source. IBM, the company selling open source software, will work closely with India to build the newest technologically sound applications which relate to India's most important issues such as taxes, social security, and healthcare (Indian state).

Challenges

In trying to defer customers from buying Linux, Microsoft describes the software as one that “is risky and undermines innovation” (Becker). Microsoft has also offered government users access to some of its source code for Windows in order to further adapt to new technology (Sharma). President Kalam worries that the “further spread of IT, which is influencing the daily life of individuals, would have a devastating effect on the lives of society due to any small shift in the business practice involving these proprietary solutions.” He argues, “It is precisely for these reasons open-source software needs to be built….open-source code software will have to come and stay in a big way for the benefit of our billion people” (Becker).

Brazil

Implementation

Similar to Munich and Japan, Brazil stands as a role model for other governments in its region who are looking to migrate towards open source. Currently, two small government agencies in Brazil have shifted from Microsoft to Linux. In addition, Brazil signed a letter of intent with IBM Corporation to encourage other government agencies to switch to Linux as well (Brazil Gives; Clendenning). President Luiz Inacio Lula da Silva enthusiastically advocates open source (Clendenning). Amadeu, former economics professor and the head of Brazil's National Information Technology Institute, says, “We have some islands in the federal government using open-source, but we want to create a continent” (Brazil Gives; Clendenning). Amadeu pushes to implement open source in the country's electronic election process.

The Brazilian government has set up 86 open source software computer centers in Sao Paulo, which provide low income citizens with a place to work. Brazil businesses such as the fast food chain Habib's also use open source to allow customers to order their food through Linux and have it delivered to their homes (Brazil Gives; Clendenning).

Benefits

Linux offers an effective substitute for costly Microsoft products that the Brazilian government and the general population cannot afford. Open source software allows for free computer centers, which benefits the average Brazilian citizen who cannot afford a home computer. One citizen who utilizes the computer centers said, “If this was a rich country, it wouldn't matter and we could buy Microsoft products, but we're a developing country and Linux is just a lot more accessible, so we're heading toward a Linux generation” (Brazil Gives; Clendenning).

Supporters of open source claim that government efforts to increase the use of Linux will create a larger job market. Similar to Munich, India, and Far East Asian countries, Brazil's government feels that the added benefits will include high security and the low cost of Linux (Clendenning).

Challenges

Microsoft plays a dominant role in deterring more Brazilian government agencies from switching to open source. Microsoft officials claim that by switching to open source, Brazil will actually spend more money because of added service costs the migration will require. Microsoft officials worry that Brazil's government will require a switch to open source, thus diminishing citizen's right to choose. Luiz Moncau, Microsoft's marketing director in Brazil, states, “We still think free choice is best for companies, the individuals and the government” (Brazil Gives).

Conclusion

Increasingly, governments around the world look to open source as a cost-effective, high-security solution to their problems with Microsoft. Many countries also see open source as an opportunity to catch up in the technological revolution, especially countries that cannot afford Microsoft's pricy software and operating systems.

Many governments have already initiated switches to open source and have benefited from doing so. They use open source on government computers and in schools, the military, public workstations, and businesses. However, many governments hesitate to take the leap and would prefer to wait until they observe more successes from other governments.

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Copyright and Licensing



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IBM and Novell: Investing in an Open Source Future

Prepared for English 420

By: Christina Jennings, Abrahm Persohn, and Lacey Uhlemeyer

November 16, 2004

Executive Summary

This report explains how Novell and IBM are investing in open source technology. These companies have chosen to invest in open source because

• Linux has the quality and potential to be equal to commercial alternatives.
• Open source adds competition between other vendors since it can be customized to fit specific needs, security features, and cut costs.

The two companies are showing their dedication by donating funds and focusing on improving open source technology. IBM invested in open source by making Linux the primary operating system on their servers and donating software code to Apache Software. Novell invested by purchasing XIMIAN and SUSE. They also plan to provide customer support to help familiarize customers with open source technology.

Introduction

This report addresses the benefits of using open source technology as it pertains to the focus companies, IBM and Novell. This report will

• Familiarize the readers with open source, IBM, and Novell.
• Help the readers understand why these two companies are indeed investing in open source and the methods they are taking to invest in the future of open source.
• Inform those interested as to how these changes affect the computing industry and every day computing.

Open source can be defined as a method for software licensing and distribution that allows users to copy the source code and modify it freely.

International Business Machines Corporation (IBM). is an information technology (IT). company. They provide numerous services that include business transformation consulting and software/hardware research. These services are "combined to provide business insight and solutions in the enterprise computing space. IBM's clients include many different kinds of enterprises, from sole proprietorships to large organizations, governments and companies, representing every major industry and endeavor" (GuruNet)

Novell's software applications provide business solutions that work across multiple platforms. Important functions include securing and empowering the networked world, helping organizations solve complex business challenges, simplifying systems and processes, and capturing new opportunities. Novell supports highly distributed network solutions and capitalizes on the growth of the Internet.

The paper will discuss more details about open source and the two companies.

What is open source

Open source is software created through community cooperation. Open source's source code, made available to the public for free, can be copied, modified, and redistributed. Individual developers, large companies, and anyone with interest in open source compose the open source community.

Why move to open source

IBM and Novell are making this change to open source because they believe there is a need for it in the market. Businesses realize the benefits of investing in this new technology and the opportunities that will arise.

“The remarkable potential of Linux has become obvious to anyone who is paying attention. Industry experts and analysts agree that Linux represents the next major disruptive technology in our industry, and many businesses are looking to expand their use of Linux and open source technology in mission-critical environments” (Novell).

Investing in open source will keep Novell and IBM ahead of the competition as the world of technology enters a new era. “Sam Palmisano, Chairman and CEO of IBM Corporation has declared that we have entered an 'On Demand' era, where companies the employ open IT tools to stay flexible and adaptive will have an edge over those that are rigid and inflexible” (IBM). Taking a chance on this new software may seem like a big risk, but, “many companies find the quality of mainstream open source products like Linux to be equal to that of commercial alternatives” (Fortune Magazine).

When analyzing open source, many aspects can be potentially beneficial, such as its building of choice in the market, lower cost, and tough security. It is important in any economy to avoid monopolistic situations where one vendor has control of the market. Open source adds competition to the market, reducing vendor dependency. Lower costs is another attractive incentive for businesses, “Open source cuts costs by lowering licensing and maintenance fees and by enabling deployment on less expensive hardware platforms. As a result, open source alternatives—and Linux in particular—are becoming more attractive to IT professionals” (Novell).

Open source operates around the concept of peer review. “Open source permits and encourages collaborative development by tens of thousands of developers around the world, resulting in fast resolution of problems” (Novell). This vast community helps keep open source secure; with the source code available to the public, anyone who catches vulnerabilities has the access to fix them quickly. This access also allows for customized changes that can fit a businesses' specific need. This is what helps Novell and IBM stay more flexible then those companies that rely on a closed system, which can be less secure and less adaptable to fast changes.

IBM’s commitment to open source

While open source technology has only recently gained significant attention in the news and among the general public, IBM's involvement with open source technology began more than five years ago.

In mid June 1998, IBM needed a web server to support its WebSphere Suite, a software platform that runs and manages Java applications, providing a "centralized infrastructure for application integration and business process automation within companies" (IBM). “IBM chose the Apache Webserver to support and bundle with the software” (Open Source Initiative).

In late 2000, IBM chief executive Louis Gerstner announced that his company would spend $1 billion on Linux during 2001. This would include "bringing the Unix clone to its full line of servers, bringing its broad software portfolio to Linux, training its services and consulting personnel, and placing advertisements such as full-page ads in major daily newspapers" (Shankland).

"IBM is making the commitment, Gerstner said, because it 'is convinced that Linux can do for business applications what the Internet did for networking and communications'--make computing easier and free from proprietary operating systems" (Wilcox). .

Promoting an open source environment

In 1996, IBM launched “alphaWorks", a web site where developers can access, share, and modify different code the company releases. It is designed to “spread cutting edge open source technology” (Open Source Initiative). .

Open source software and applications

Since choosing the Apache Webserver to support WebSphere, IBM has shifted some resources toward creating open source software. They released a program called Secure Mailer, an open source program that runs on IBM’s AIX Unix platform, which sends and stores e-mail messages with a high level of security.

Following through with one of its initial goals, IBM made “Linux the primary operating system on all of their high-end mainframe servers” (Open Source Initiative).

In September 2004, IBM released the latest version of DB2, database software that can run in Linux and Unix. The functions of the DB2 software include “automatically managing databases, allowing companies to better manage, process, and retrieve data, such as product pricing” (Weir). The company hopes to steal some market share away from Oracle, a corporation focused on business-to-business software and services.

Sharing with the open source community

Hoping to speed up the development of open source programs, IBM recently contributed to the open source community. These contributions include “releasing the code of various runtime and tool components to the open source community, and giving speech mark-up editors to the Eclipse Foundation, an open source software development platform” (Marson). The code will help web developers

• “Add speech- recognition capability to Web applications.
• Write standards-based speech applications.
• Make it easier for people with disabilities to use a computer” (Marson). .

In another recent announcement, IBM “contributed more than half a million lines of its software code, valued at $85 million, to an open source software group, the Apache Software Foundation, who will hold the licensing and intellectual property rights” (Lohr).

IBM hopes releasing the code will increase the number of Java applications written, which are managed by IBM’s WebSphere, rival to Microsoft's software platform, .Net. With WebSphere managing more applications on the market, IBM can compete more with Microsoft.

Spreading open source technologies abroad

IBM has taken major steps to spread open source technologies around the world. The company announced that “it is working with India’s National Informatics Center (NIC), their government’s premiere consulting organization in the field of Informatics Services and Information Technology applications, to deliver open solutions to India” (IBM Press Release). .

The company also reported that the County of Essex, Canada’s southernmost county, “moved its financial applications to a Linux system running DB2 and Red Hat” (IBM Press Release). .

IBM also wants to implement Linux and open source technologies in Brazil. In September 2004, IBM announced it will "spend more than $1 million to help fund a Linux technology center in Brazil. The center, created in conjunction with the Brazilian government, aims to train 700 public service professionals on the use of Linux by year's end" (McMillan).

The United States has already and will continue to utilize open source technologies, too. IBM will be deploying a massive Linux-based supercomputer for the U.S. Army at the Army research Laboratory Major Shared Resource Center in Aberdeen, Maryland. The computer "is slated to be among the top ten fastest Linux-based supercomputers in the world. It will be the largest Linux supercomputer in use by the military to date" (IBM). The purpose of the computer will be "to speed the research and development of advanced military systems" (IBM).

Novell’s commitment to open source

Novell is also showing strong support for open source technology. In early 2003, Novell acquired Ximian, a developer of applications that run on Linux. Later that year, Novell purchased SUSE, a prominent supplier of Linux operating systems to large corporations. Their investment of the two Linux vendors totaled more than $250 million. Through the acquisition of SUSE, Novell formed a partnership with IBM, who, according to the Linux Beacon website, “has invested $50 million with Novell for SUSE and open source development” (Woodie).

Providing an open source environment

Novell offers the DevelperNet Program, a team of Novell support professionals who solve problems encountered by Novell developers; and the “Novell Forge” website, where developers can access, share, and modify code released by the company.

According to the Linux Beacon website, “the company announced that more than 10,000 developers have signed on with its DeveloperNet program in the last year” (Woodie). The website also said that “registration on its open source development Web site, 'Novell Forge', has increased by 60 percent since the SUSE acquisition officially closed in January” (Woodie).

Open source software and applications

Part of Novell’s new strategy is realizing the profit potential in the software and services that are used by operating systems, instead of concentrating on the operating systems themselves. According to the Information Week website, “Novell introduced several open source initiatives Monday, March 22, 2004 , at its annual BrainShare conference in a move to regain market relevance while demonstrating it has learned from past mistakes” (Greenemeier). One such initiative is the OES, or the “Open Enterprise Server”, which is a combination of "NetWare 7 and SuSE Linux Enterprise Server 9, as well as networking services designed to interoperate between the systems" (Greenemeier).

With the Open Enterprise Server, Novell hopes to give its customers a versatile working environment. According to the Server Pipeline website, with the Open Enterprise Server, “Novell is supporting a mixed environment where its customers can simultaneously run NetWare, Linux, and Windows” (Greenemeier).

With the speedy acquisition of Ximian and SUSE last year, the company will be getting the product into the hands of the consumer more quicker and more efficiently. According to The Register website, the networking firm announced that “Novell Enterprise Server (OES). will be available from early November” (Leyden). The company “signed up Bull to sell SUSE Enterprise 9 across its server product line” (Leyden).

Although Novell’s focus has shifted more towards the potential of software and services, the company announced that it has no intentions to cut out its operating system development. According to the InternetWeek.com website, Chris Stone, Novell Vice Chairman, said that the move to buy Ximian and SUSE Linux “was not intended to replace Novell’s longstanding investment in the NetWare operating system, but rather complement it” (Montalbano).

Sharing with the open source community

Novell also hopes to give their customers a larger role in development in the new technology. According to the Server Pipeline website, Novell said it will “contribute both SUSE’s ‘YAST’(Yet another Setup Tool). Linux systems-management tool and Novell’s iFolder personal storage and filing application to the open source community” (Greenemeier). These tools make it easier for developers to use Linux and help them to develop new innovations for existing open source applications, as well as new applications altogether.

Novell plans on concentrating on providing support to customers in order to help them make the transition to open source technology. According to The Register website, Novell has “set up a unit—in partnership with top-tier software and hardware vendors including HP, IBM, Intel, and Oracle—to help customers to move their applications to Linux” (Leyden ).

Conclusion

In conclusion, it can be seen how and why IBM and Novell are investing in open source technology. These two companies are investing in an open source future because it appears to be the right choice for business, particularly because it is cost effective and efficient. Only time can answer the question of whether or not open source is truly the future of business.

 

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White Paper: Domestic vs. International Open Source Legislation and Why It Exists

Open Source Development and Documentation Project
Purdue University





Domestic vs. International Open Source Legislation
and Why it Exists*

Nikita Anderson
Amicia Elliott
Joe McNamee

Summary

Legislation is becoming necessary world wide as the use of open source software (OSS) increases in domestic and foreign governments. Proprietary software in many countries has caused an economic boom in the software industry that open source is threatening. However, government use of OSS in other countries gives governments a chance to join the world market and boost their own economies. A few countries have already begun the process of legislation for regulation of the industry, but others will soon follow as the popularity of OSS increases.



Domestic and Foreign Economics of Open Source Software

Open Source Software is Economically Beneficial

The existence of open source software is beginning to have a dramatic and important impact on our economy. The demand for open source software grows every year and determines the market share for closed software from big businesses like Microsoft. In government open source is becoming increasingly popular because it is much less expensive and can be upgraded as their programmers see fit; instead of buying new software every year. With open source also comes security, because bugs are easier to catch, hackers have no “backdoors” to get into, and there is no risk of getting locked into one vendor. Government purchase is expected to grow by 9% every year for the next five years (Economist 1). Economically there is a substantial benefit to the United States and foreign governments using open source software because it will create jobs for consultancy firms, systems integrators like IBM, Red Hat or another Linux provider, small technology firms that can tailor the software, and many others.

In the United States, we operate under a free market economy, which assumes that in exchange for a product open source authors should be receiving goods or services. There are several goods and services exchanged in the open source community, such as advertising for other services or products, filling an unfilled demand, debugging and enhancement, and prestige (Green 2). From this idea spawns an economic benefit to the programmer as well as the user. A popular question surrounding open source development is: what does the programmer get from it? The motivation for open source software (OSS) programmers is not solely contingent upon money, so programmers look to the other benefits.

There are Several Benefits to the Open Source Programmers

The main reason programmers contribute to open source software is the need for a specialized function. As the need for more specialized programs increases, so do the number of programmers, which leads to a larger contribution than any proprietary company can make. This filling an unfilled need occurs in many different programs and makes them very attractive to governments who need a wide range of specialized functions. Advertising is another motivator for programmers because it can lead to profit from other programs. Netscape Communications, for example, has an open source browser called Mozilla, which they use to advertise web servers and web portals where they make money.

The last major benefit to open source programmers is prestige. For many of them, contributing to open source projects gets their name out there and promotes their skills. It also creates a sense of personal pride. Another economic benefit of open source code is reverse engineering. By looking at an open source program, it can be broken down into specific functions and they can be used as necessary in another program, for instance. Linu's’s Law of Software Engineering states that, “Given enough eyeballs, all bugs are shallow.” This means that with OSS engineering, because there are so many people looking at the code, bugs are found and disposed of very quickly (Varner3). With the rise in terrorism, security is a big political issue right now (Economist 2). The easy removal of bugs from government run systems makes it harder for hackers from other countries to infiltrate our systems and leave viruses. It also gives us an advantage where advancement of the functionality of the programs is concerned, and creates markets for many smaller companies as far as advances and maintenance are concerned.

In developing countries, OSS is becoming popular because it provides local jobs and the chance for profits in exports. For example, currently, the proprietary software industry in India accounts for 16 percent of all exports, not including related non-software Information Technology (IT) typically boosted by advancements in software. It should also be noted that Microsoft, IBM and others are outsourcing programmers to countries like India because it is more profitable. This encourages the world market development of the software industry and the stimulation of a local economic boost of jobs.

Open source software has a lower total cost of ownership, which is its largest economic advantage over proprietary software. The acquisition, maintenance, and transition of open source systems are quicker and cheaper, which makes them advantageous in the market (Daffara 2). In the last three years approximately $25 billion in Linux revenues have been recorded worldwide. Linux programs generate revenue from technical support packages and licenses, which are not free. Much of this has occurred in governments where there are many benefits to using Linux, such as building an IT infrastructure under constrained budgets, nurturing the possibility of the software industry producing an export growth, security of the systems, or the ability to optimize the software.

Effect of Open Source Software on Big Business

Open source software is challenging the market and causing a decrease in demand for proprietary software. For example, in 2002 government purchases of software totaled nearly $17 billion globally and Microsoft controls only a small part of the market with government sales around $2.8 billion (Economist 1). Microsoft is desperately trying to discredit the use of OSS because it endangers the near monopoly over the industry.

Software development is driven by the size of a market, and its maturity (Varner 1). Right now Linux and other open source software programs are too small and too young to be equivalent to Microsoft or IBM, but it grows in popularity consistently both in the U.S. and other governments. The increase in market share for open source software is paving the way for a dramatic increase in legislation and regulation of development and deployment of such programs worldwide.

Open Source Software on the Domestic Front

Open Source Software serves as competition for Proprietary Software

Open source software has become huge on the domestic front as the debate between open source software and proprietary software rages on. According to Statskontoret, the Swedish Agency for Public Management, “free and open software gives the user the freedom to use, copy, distribute, examine change and improve the software” which means that by using open source the user has more control over the software product unlike using proprietary software (Statskontoret 4). This means that proprietary software has more competition. According to Statskontoret, “Free and open source software entails a new kind of competition, separated from that of traditional business in that the product generally is not owned by any single company and therefore cannot be purchased of the market. Furthermore, the software itself is not constricted by any cost or fee. It can be obtained free of charge on the internet” (Statskontoret 4).

Microsoft’s take on Open Source Software Usage

The debate against open source usage centers on the fact that open source is free; this is the reason why top open source programs like Linux, are seen as a threat to proprietary software providers like Microsoft. According to Microsoft the use of open source software would be a “disruption in the software ecosystem” (The Economic Times 4). According to an article in The Economic Times, Microsoft feels this way because proprietary software and commercial software have “co-existed” within the “software ecosystem” for four years. Sanjiv Mathur, Head of marketing for Microsoft in India, had this to say about Microsoft’s take on open source. “We are not averse to sharing our source codes with our customers if it will be beneficial for them, however we are concerned about the potential implications of GPL (General Public License)” (The Economy Times 40).

The GPL, according to Microsoft, is important because it plays a huge role in “discouraging the development of commercial software that threatens to undermine intellectual property, stifle innovation, and limit entrepreneurism while reducing choice in the market” (The Economic Times 3). Although Microsoft is clearly not in complete favor of using open source software, there are people around the domestic sphere that think otherwise. The big issue on today’s domestic front is not whether open source software should be favored over proprietary software, the issue, is whether or not governments should even use open source software.

Government and Political Use of Open Source

The biggest argument in favor of open source is its cost efficiency on the part of the government. According to the Economic Times:

The money saved in the service-oriented model of open source is then also normally spent within the economy or the governmental organization. Unlike proprietary software situations where they are paid out as a pure license fees to large monopolistic multinational organizations (The Economic Times p 2).

The government is able to spend less money and it stays within the provider’s services rather than being distributed as pure license fees to proprietary giants such as Microsoft. The government is not the only organization that benefits from open source, business’s benefit from it as well. According to Jason Walsh, author of Open Source Reality Check, “business use of Linux offers credibility and financial gain, No general purpose operating system can survive if it is not adopted in some form of business” (Walsh p 2). Open source has also been spotted in use on a political front. Howard Dean and Wesley Clark former democratic candidates for the presidential election used open source efforts as a way to help their campaign. Although the two democratic candidates both used open source, neither seemed to be in complete favor of it. According to Josh Lerner, director of technology for the Clark campaign, they have no “bias in favor of, for or against any particular model, we can’t afford to be religious about it” He also stated that that the Clark campaign only used open source out of “expedience” (Brokmeier 1).

The Dean campaign had this to say this via email after being asked why they chose open source software for DeanSpace, whether cost was a factor or if proprietary software wasn’t up to the task: Zephyr Teachout, the director of Internet Organizing and Outreach:

Cost is only one of the factors in our use of open source software. We also greatly value the reliability and security that is inherent in mature open source software…DeanSpace itself was built on top of the open source Drupal community system. This is just one example of how open source software has allowed us to focus our energy on getting Howard Dean elected (Brokmeier 2).

Open Source Case Study in State Governments

Although both of the former candidates used open source neither would comment on their view on open source as opposed to putting it into action within the government. The matter of instilling it into the government has become controversial because if implemented within the government it may seem that the government is favoring open source software over proprietary software. An example of this debate can be seen in Oregon. In April of 2003 a huge debate stemmed up in Oregon over the use of open source software. In Oregon they wanted to implement the first bill in the United States that would “encourage the use of open-source software by a state government” (CNET News p1). According to Staff Writer Lisa M. Bowman, “the bill would require the state to consider using open-source software when buying new programs” also stating that open source cannot be excluded from the process in when proprietary software is concerned. The outcome of this argument would be the stepping stone for future use of open source since has become a huge debate around the world. Since open source often promotes itself as “cheaper and more flexible than proprietary versions” it is looked upon as the essential software to many worldly “cash-crunched” governments. The court decision on enacting this bill has become such an issue because many countries look to see what the United States are going to do before going full throttle into a program. According to opponents of the movement to rid open source protections said, “We’re concerned about the presidential value of this, “other countries and (European Union) members might look to this as a model.” So the debate rages on not only about domestic use of open source software but also about international use as well.

Open Source Software in International Affairs

There is Increasing Interest in Open Source from Foreign Countries

While open source software is making headway into governmental use in the United States, internationally it is flourishing. Many countries have been introducing legislation to promote the use of open source software within their government or even demand it. The most notable of these is China’s open source movement. Now that China’s economy is growing rapidly, especially in the high tech field, the government decided that the nation shouldn’t be subject to another country’s software (read: Microsoft). To escape using Microsoft software, China is sinking millions into a national version of Linux, dubbed “Red Flag Linux”, referring of course to the Chinese national flag. (Nohora 1) There are a few reasons for this. Primarily, China and the rest of east Asia do not want to be stuck using proprietary software in security sensitive situations, such as military applications. The Ministry of Information Industry believes, like many Linux backers, that the open software is likely to be more secure than proprietary software is. National pride is another issue here since the country currently relies on virtually all imported software, primarily Microsoft, IBM, Sybase, and Oracle. To fight in the desktop arena China has teamed up with Korea and Japan to develop a Linux based desktop for their countries. (Nagaraj 1)

Whereas these projects are just getting started in the Far East, there has been a good amount of activity in Europe regarding governmental pressure to use open source software within the government. In late 2001, France’s Agency for Information and Communication Technology in the Administration was given the assignment of ensuring government projects use open source whenever possible to cut costs. The other reason is that the people are generally very wary of e-government. By using all open standards and making use of open source wherever possible, the people can determine for themselves how the software goes about doing what it does, which will inspire trust in the people. In governmental projects, the reason for going with open source software, like China, is one of security. By having access to the source code, the government can determine how secure the software is, and if necessary, modify it. (Perera 1)

The UK is has been pursuing an open source policy as well. In 2002, the office of the e­Envoy published the UK’s first paper on the open source software policy of the government. It does not give direct preference to open source software since it states “UK Government will consider OSS solutions alongside proprietary ones in IT procurements. Contracts will be awarded on a value for money basis.” But given the requirement to use products that support open standards and that the paper states they do not want to be locked into a proprietary vendor, the use of open source software is obviously wanted. Similar to other governments, the UK openly states that security is one of the foremost requirements for the software and that “Properly configured OSS can be at least as secure as proprietary systems, and OSS is currently subject to fewer Internet attacks.” (Office of the e-Envoy 1)

In 2002, Denmark’s Board of Technology published a paper on the economics of open source software in e-government when compared to commercial alternatives. This paper covered the use of open source software in desktop and server environments, taking into account ease of integration, standards support, price of support, and ease of use. The report does not give a recommendation to use open source software but merely states that open source software is an excellent alternative to commercial software. (Danish Board of Technology 77) This is primarily because of the open standards that OSS supports and the lower cost associated with it, especially when upgrading. Like the other governments mentioned, a primary concern of the paper is security, and like the others, it notes that the security of OSS has been better than most proprietary software.

The Peruvian government has recently introduced a bill regarding the use of open source software in government. This bill basically says that while a company may charge for software and support, the code MUST be open source to be used in any governmental application. There are three reasons for this stated in the bill. First is to guarantee a citizen’s access to data. This is accomplished, according to the bill, with open source software since the data is tied to open standards. Applications can be easily written to support these formats. Second is to guarantee the long term usability of data. Since the code for applications is open and so are the formats, if the vendor providing the support and code goes under, another group or company can take over support of the software easily without having to decipher anything. Lastly, in a theme common among these studies and legislations, is security. By having the code open, flaws and holes can be identified by the large and ever growing open source community. There is another advantage touched upon by the bill but not stated outright. This is guaranteeing the government does not use their citizens’ data inappropriately. By opening the source code, the public can determine for itself if the software uses the data the government collects appropriately. The Peruvian government is also interested in using open source software as a means to create jobs for local programmers. Whereas most software bought in the US is written here, it is another story in most small counties such as Peru. By going to open source software many new applications will need to be written and many existing open source applications will need to be localized. (Open Source Initiative 1)

Besides these countries, there are about two dozen others that are actively looking at having legislation regarding the use of open source software. These include South Africa, where the bill is a hard preference, Ukraine, Portugal, and Bulgaria, who have also introduced bills though they are not quite as far along as those in Peru and China. Other countries that are strapped for money such as Estonia have hinted at introducing a bill but have not followed through as of yet. The EU, although it will most likely not introduce legislation, has published papers on the advantages of using open source in e­government as well. (McCallagh 1)

The international adoption of open source software has been extraordinary in the past few years and considering the growing acceptance it will likely only increase. What is very interesting about these reports is that the common theme among them is that the adoption of open source software is driven not by monetary concerns, but security ones. This is not limited to the oft quoted “can it be cracked?” type of security, but the long term security of data. More specifically, “if something happens to this company or they refuse to give support, can the data and application be maintained?” Combine this increase in security, tightening budgets, and the desire to be less reliant on foreign software, one can only expect more governments, both domestic and international, to adopt legislation encouraging or even demanding the use and regulation of open source software.

Resources

International Affairs

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Domestic Affairs

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Wohl, A. February 2004. Linux World: A Corporate Linux. http://www.wohl.com/wa04­12.htm

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